Originally Posted by
pjoalfa
Again, I'm not a tax attorney, but if the recipient agrees to the valuation presented, that's gonna be it. So theoretically, if AA calls miles worth 2.5c each and you accept it, that's the value.
Disagree. While I am NOT providing individualized tax advice to anyone on this board (Unless you want to retain me
) , anyone interested in this issue would probably be better off reading the information I have presented here:
http://www.flyertalk.com/forum/miles...here-help.html
You are not deemed to have accepted the valuation by accepting the prize. As always, document, document document. If you won a trip valued at $5000, and you can prove that you could purchase the same trip for $3000, you should value the prize as $3000 when you report the value.
Bear in mind, it might get you audited (as it did me), but if you have documented properly, you should be fine.